Is a further expansion of sharia banking envisaged? Already we can read that:
"London is also looking to take advantage of the modern wave of sharia-compliant banking by positioning itself as a centre of Islamic finance.
The UK now has three fully-sharia-compliant banks, founded in 2004, 2006 and 2007. In addition there are over 20 major western banks – four times more than in any other European country – that can offer customers in the UK an “Islamic window” through which to buy Islamic financial products and services. Many UK-based law firms also offer services relating to Islamic finance.
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Islamic finance has another great advantage in the UK, namely the support of the government. The UK has adapted its financial regulations to accommodate the requirements of sharia-compliant banking.
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International Financial Services London estimates, in a report released in January, that the market for sharia-compliant financial services grew from $150 billion in the mid-1990s to $531 billion by the end of 2006. And a report released in May by Damac Capital International says that the global market for sukuk more than doubled between 2006 and 2007, hitting $62 billion from $27 billion a year earlier, and that it will reach $200 billion by the end of the decade. The Damac report suggests also that the entire Islamic banking and finance market is itself growing at 15 to 20 per cent annually.
The UK has, since 2007, been expressing a determination to be the first western government to issue an Islamic bond. So far, the only western issuers of sukuk have been the Texas-based oil company East Cameron Partners, the German state of Saxony-Anhalt and the World Bank."
When Saudi Arabia decides to call in its loans what control will they be able to exert over the debtor nations?
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